Stock analyzer

ABSTRACT

A stock analyzer and method of analyzing stock in which variable information with respect to a particular stock is placed into an information storage system in increments, the total is measured, and the total measurement is translated into a &#39;&#39;&#39;&#39;buy&#39;&#39;&#39;&#39; or &#39;&#39;&#39;&#39;sell&#39;&#39;&#39;&#39; reading on an indicator.

United States Patent 191 Goldman 1 1 May 21, 1974 ,STOCK ANALYZER I [75]Inventor: Stanley M. Goldman, Plainview, References Cited UNITED STATESPATENTS [73] Assignee: G. M. Stanley & Co., Inc., New 3,537,642 11/1970Laurita 235/61 E- Y York N Y 3,204,711 9/1965 Boadle et a1. 177/70 [22]F d 4" 1971 Primary Examiner-George H. Miller, Jr. [21] Appl. No.:201,688 Attorney, 4ggr z q r firm-Brumbaugh, Graves, Dono- Rela ted US,Application Data hue & Donohue 63] Continuation-impart of Ser. No.94,680, Dec. 3,

1970, abandoned. [57] ABSTRACT A stock analyzer and method of analyzingstock in variable information respect to a particular 1 35/ 24 1 235/61G stock is placed into an information storage system in 1' 1111- 501g19/40, g 3/ 14 increments, the total is measured, and the total mea-[58] 'Figld 9 f S earc l3 l7 7/1, 15, 17, 2, 45,

, 177/419, 210, 21 1,?43170, 35/24 1i, 2 1C311, 31 R, 31 D, 32,48 R, 48B; 235/61 G, 61 E surement is translated into a buy" or sell reading onan indicator.

3 Claims, 5 Drawing Figiires PATENTED 1111 2 1 11114 SHEET 1 0F 3INVENTOR. STANLEY M. GOLDMAN his A 7' TOR/VE'YS PATENTEDHAYZI 4 7 v13.81 1.621

sum 2 or 3 INVENTOR. STANLEY M. GOLDMAN his ATTORNEYS ple, in respect tothe exchange on which the stock is the stock analyzer of the presentinvention;

the movable contact 21 will engage the contact 23,

STOCK ANALYZER This invention relates to a novel stock analyzer and amethod: of analyzing stock. The application is acontinuation-inx-partof. my earlier co-pending application, Ser. No.94,680, filed" Dec. 3, 1970, now abandoned.

In the stock analyzer and. method of the present invention standards aresetforsevaluating certain specific datapertainingto the stock to beevaluated, for examtraded, the price/earnings ratio, yield, etc.,andthese values are introduced into a storage system in which they aretotaled andtranslated into a buy or sell reading on anindicator.

For a'complete. understandingof the present inven tion reference canbemade to the detaileddescription which follows and tothe'drawings,in'which;

FIG. I is a perspective. view of one embodiment of FIG. 2 is a schematicview of the circuit diagram of the stock analyzer shown. in FIG. 1;.

FIG. 3 is a perspective view illustratinga weight used inconjunctionwiththe stock analyzer shownin: FIG. 1

more weight is added to the movable platform, the

movable contact 21 will move out of engagement with the contact 23 andinto engagement with the contact 24, thereby conditioning the Sell lampfor operation.

As more weight is added to the platform, the contact can be added to theplatform with the switch 20 open so that the operator will not know whatthe recommendation of the stock analyzer is until he has completed theanalysis and closes the switch 20. v rn tlie use of the stock analyzeran assortment of I weights is provided, for example, weights of 2% 02.,1 /2 oz. and A. 02., identified by the colors red, yellow and black,respectively, on their heads 14a. In analyzing a particular stock,weights are assigned on the basis of specific'data relative to thestock, for example, the exchange on which the stock is traded, theprice/earning ratio, yield, etc. The following chartillustrates anassignment of the weights on the basis of information available inStandard and Poors handbook.

Previous months Cur..mkt; price to volume to Earnings .high foroutstanding. Total out- Consec. for last Good or How many Color Where wcur. and shares (per-- Consec. Assetsto standing yearly reportingexciting years in codetraded past year centage) P/E ratioyield'forliabilities shares earnings period news business Red NYSE. 50%or 10% or more; Under 9 Over3 3 to l or UnderSl 5 or. Up over Yes-an-Over 10.

less. to 1. yrs. more. mill. more. 20%. nounced I I by co. Yel .AMEX 80%or 5%to9%....,.' 9l2to 3 yrs. or 1to3t0l $l2 mill.... 3-4 IncreasedMaybe 5-10.

- 1 less. less. from (rumor).

i Q kmludfl Black Other At high Less than ...Overl2 None Under 1 0vern$2Under 3.. Decreased. e Undbl' to l. to 1'. mi

FIG. 4 isa schematic circuit diagram illustrating another embodiment ofthe stock analyzer; and

FIG. 5 is a schematic view of the circuit diagram of still anotherembodiment of the invention.

The stock analyzer illustrated in FIGS. 1 to 3' of the drawings includesa housing 10 containing a scale 11 which has a movableplatform 12. Thetop of the housing contains a plurality of spaced apart openings 13directly above the movable platform of the scale. Elongated weightsfl4-having selectively colored heads 14a can be dropped onto the movableplatform of the scale through the Openingsleavingthe' upper ends of theweights visible. andv accessible to the operator.

The housing accommodates a plurality of indicating means which in thepreferred embodiment of the invention are lamps l5, l6 and 17indicating, respectively, Sell, Hold and .Buy. Also, to make it possiblefor the instrument to be checked to insure that it is in operablecondition', a test lamp l8 is also provided.

The lamps l5, l6, l7 and 18 are arranged in parallel in a circuitwhichincludes a source of electric potential 19, an on-off switch 20 andalmovable contact 21 carried bythe platform. The lamp 18-is connected inseries with a test switch 22.

When the platform 12! is in its fully raised'position,

conditioning the. testlamp 18 for operation. When the test switch 22.is'closed, the lamp l8 should, light, indicating that the stockanalyzer isready foroperation. As

In addition, weights can be assigned on the basis of 40 whether thecompany is a manufacturer of staple goods (red), such as drugs, food,oil, etc., a glamour stock (yellow), such as laser beam technology, airpollution, etc., or a speculative stock (black).

When the analysis is completed on the basis of the informationpertaining to the particular stock, it may be desirable to take intoaccount additional factors, such as the current condition of the market,the condition of the particular industry, the length of time which thestock is to be held, etc. Although the weight to be accorded to thesefactors depends to a large extent on the judgment of the operator, thedials 27 and 28 on the housing are provided to assist him. The upperdial 27 has a pointer 27a which can be moved relative to a scale 29. Thedial 27 also carries an extension 27b divided into areas red, yellow andblack designating weight magnitudes. The dial 28 also has a pointer 28awhich is movable relative to'a scale 30 and a pointer 28b which pointsto one of the areas of the extension 27b and thereby designates theadditional weight to be 0 added.

whereas if it is on the decrease, that would be consider ed a negativefactorl The bottom dial 28 can be adjusted on the basis of theperformance of the industry and the length of time which the stock is tobe held. For

example, if the performance of the industry has been good, that would beregarded as a plus factor. Also, if the investor intended to hold thestock for a long period of time, he would add a plus factor. When thesejudgment corrections have been made, the appropriate weight indicated bythe pointer 28b is added to the scale. By closing the switch 20, theoperator can determine whether to sell, hold or buy by the glow of theappropriate. lamp.

In the embodiment of the invention illustrated in FIG. 4 of thedrawings, the movable contact2l carried by the platform 12 serves as thesliding arm of a potentiometer which registers a Sell, Hold or Buyreading on a voltmeter 31 depending upon the displacementof the movablecontact relative to a resistance 32. The resistance 32 is connected inseries with a control switch 33 and a battery or other source ofelectric potential 34. 2

The voltmeter is connected to the upper end of the resistance by a lead35 and to the movable contact 21 by a lead 36 which has sufficient slackin it to permit the movable contact to move downwardly along theresistance as additional weight is added to the scale. As the weight onthe scale increases and the movable contact 21 moves downwardly relativeto the resistance, the voltage reading on the voltmeter will increase.By calibrating the dial on the voltmeter into Sell, Hold and Buyreadings, when the switch 33 is closed the voltmeter will indicatewhether to sell, hold or buy the stock which is being analyzed.

In the embodiment of the invention illustrated in FIGS, the'stockanalyzer of the present invention includes a housing containing aplurality of multiposition selector switches 41 capable of introducing avariable measure into a storage system which is ultimately totaled andthe total measure translated into a buy or sell reading on an indicator.The storage system of this embodiment utilizes variable resistances inlieu of the varilects a resistor 45 of still lower resistance. When allof the multi-position switches 41 have been adjusted to their selectedon positions in accordance with the prescribed standards of evaluatingeach of the factors of 4 the stock which is to be analyzed, theoperation of a read switch 46 completes a circuit from a power supply 47through the entire bank of selected resistors connected in series toregister on an ammeter 48. Since the selected resistors decrease inresistance as the informatidri fimfih'tokls r'rr'df'fiikdibl, thecurrent flowing through the selected circuit will be higher if the stockis a good prospect for purchase and lower if the stock is a poorprospect for purchase. The ammeter, therefore, can be calibrated to showa sell reading when the current flow is below a certain level and a buyreading when the current flow is above that level.

The invention has been shown in preferred forms and by way of exampleonly,.and obviously many modifications and variations may be made withinthe spirit of the invention. The invention, therefore, is not to belimited to any specified form or embodiment except insofar as suchlimitations are expressly set forth in the claims.

I claim:

1. A stock analyzer comprising an indicator having a buy, sell reading,an information storage system for accommodating and totaling a'pluralityof different measures of information about the stock to be analyzed, aplurality of variable electrical components in said information storagesystem for introducing into said storage system the measures to betotaled with respect to a particular stock, adjustable means for varyingeach electrical component, and means for translating the total of thevariable measures into a buy or sell reading on the indicator. ii ZI Kstoc k' analyzer as set forth in claim 1 in which the means fortranslating the total measurement into a buyor sell reading on theindicator includes a source of electrical power, means connecting theelectrical components in series with the source of electrical power andmeans connecting the indicator in series with the source of electricalpower and the electrical components. 7

3. A method of analyzing stocks comprising accumulating in aninformation storage system a plurality of different measures ofinformation about a stock to be analyzed by adjusting variableelectrical components for introduction into the information storagesystem, measuring the quantum of such variable measures introduced intothe information storage system by connecting all ,of the electricalcomponents for indicating the measured quantum of such variable measuresand indicating the measured quantum of such variable measures to showwhether the stock is a prospect for pur-

1. A stock analyzer comprising an indicator having a ''''buy'''',''''sell'''' reading, an information storage system for accommodatingand totaling a plurality of different measures of information about thestock to be analyzed, a plurality of variable electrical components insaid information storage system for introducing into said storage systemthe measures to be totaled with respect to a particular stock,adjustable means for varying each electrical component, and means fortranslating the total of the variable measures into a buy or sellreading on the indicator.
 2. A stock analyzer as set forth in claim 1 inwhich the means for translating the total measurement into a buy or sellreading on the indicator includes a source of electrical power, meansconnecting the electrical components in series with the source ofelectrical power and means connecting the indicator in series with thesource of electrical power and the electrical components.
 3. A method ofanalyzing stocks comprising accumulating in an information storagesystem a plurality of different measures of information about a stock tobe analyzed by adjusting variable electrical components for introductioninto the information storage system, measuring the quantum of suchvariable measures introduced into the information storage system byconnecting all of the electrical components for indicating the measuredquantum of such variable measures and indicating the measured quantum ofsuch variable measures to show whether the stock is a prospect forpurchase or sale.